In the city centre, take-up was just 97,272 sq ft in Q4, which is the lowest quarter of the year – but this is in line with expectations due to low supply levels and BREXIT related uncertainty. While take-up for this quarter is below the 5 year average for this period, we can see that this has been skewed by the very strong final quarters of 2014 and 2016.
In contrast, the out of town market had a strong performance in the final quarter, with take-up levels of 113,039sq ft across 17 deals - above the 5 year average for this period. The annual total for this market now stands at 400,501sq ft, up on the 10 year average.
Strong demand suppressed by limited supply
- There were 33 new office enquiries in Q4 2018
- There is continued strong demand for suites of less than 5,000 sq ft with 18 new enquiries for offices of this size.
Strengthening demand for smaller sized units
Record rents have been pushed further in 2018
- Prime headline rents reached a new record during 2018 and secondary rents are close behind.
- Out of town rents have remained steady with good quality stock performing well.
Whilst Q4 did not see rents pushed beyond the headline of £34.50 psf set in Q3, this is largely due to lack of supply rather than quiet demand.
Secondary rents for refurbished stock have performed very well throughout the year and several refurbished buildings are now achieving mid to high twenties where the location and building spec is able to meet modern occupiers’ needs.
Significant Occupational Transactions
|Property||Size (sq ft)||Tenant||Landlord||Rent/Price||Lease (break)|
|Ground Floor, Spectrum||14,943||MM Teleperformance||V7||£20.00 psf||10 year lease|
|Third Floor, Hartwell House||13,258||Epic Systems||Longwell Properties Ltd||£31.50 psf||10 year lease with 5 year break|
|Second Floor, One Redcliff||10,433||HP||Scottish Widows||£28.50 psf||10 year lease with 5 year break|
|800 Aztec West||32,007||MOD||London & Scottish||£20.50 psf||10 year lease with 5 year break|
Return to speculative development
Get in touch
Email me direct
REGISTER FOR UPDATES
Get the latest insight, event invites and commercial properties by email